Targa Resources Corp. acquires Outrigger Delaware Operating, LLC, Outrigger Southern Delaware Operating, LLC and Outrigger Midland Operating, LLC ("Outrigger Permian")

Targa Resources Corp. acquired Outrigger Delaware Operating, LLC, Outrigger Southern Delaware Operating, LLC and Outrigger Midland Operating, LLC ("Outrigger Permian") for $565 million initial cash consideration, plus future performance-linked earn-out payments based on gross margin from existing contracts realized over the following two years (~9x 2017E EBITDA multiple), a transaction completed in March 2017, structured as all cash (plus contingent earn-out).

Outrigger Delaware Operating, LLC, Outrigger Southern Delaware Operating, LLC and Outrigger Midland Operating, LLC ("Outrigger Permian") operates in Gathering and Processing, is based in United States - Permian Basin (Delaware: Loving, Winkler, Ward counties, TX; Midland: Howard, Martin, Borden counties, TX). On January 22, 2017, Targa Resources Partners LP, a subsidiary of Targa Resources Corp., executed definitive Membership Interest Purchase and Sale Agreements to acquire 100% of the membership interests of Outrigger Delaware Operating, LLC, Outrigger Southern Delaware Operating, LLC (together "Outrigger Delaware") and Outrigger Midland Operating, LLC ("Outrigger Midland"). The fee-based natural gas gathering and processing and crude gathering assets are located in Loving, Winkler and Ward counties (Delaware) and Howard, Martin and Borden counties (Midland), backed by long-term producer dedications across more than 250,000 acres. Targa paid $565 million initial cash consideration with future performance-linked earn-outs. The acquisition closed on March 1, 2017.

Targa described the assets as complementing its existing gas gathering and processing footprint and expanding its reach deeper into both the Delaware and Midland Basins, with producer acreage offering decades of drilling inventory in prolific areas with multiple stacked pay zones.

Long-term, largely fee-based producer dedications (weighted average contract life 13-14 years) across 250,000+ acres with decades of drilling inventory; increases Targa gross processing capacity to ~2 Bcf/d across the Permian by year-end 2017. Integrated into Targa's Gathering and Processing segment; Outrigger Delaware connected to Targa's Sand Hills system and Outrigger Midland to its WestTX system.

Advisory firms were not disclosed for this transaction.